Discontinuation of pooling for mutual funds and how it affects Coin

Zerodha Coin - Direct MF
43

any update on this ?

44

@Bhuvan it would be very helpful if you can share us an update.

I understand that research & developments done in the past for several Coin features such as step-up SIP, pause/modify/delete SIP and lumpsum investments are going for a toss.

Even the anticipated features like SWP & STP, need a revisit.

But we the Coin users are in the dark and do not know what’s going to happen, your reply will allay some of our fears.

I am not a Subject Matter Expert, but I would suggest that the monthly SIPs to be executed from 1 - 10 need immediate attention, followed by 11 - 20 and then the 21 - 30 batch. As always, you can push a notification regarding the changes and assure Coin users regarding the transition.

@Bhuvan you have been sharing info with us regarding various topics precisely and to the point. Congrats to that. But the current delay is making some of us sleepless.

The sooner we get the update, we can be prepared to create bank mandate which can take up to 3 days to reflect in some cases. If we have the clarity, we will be able to create the schedule properly or be prepared for what is to come.

Also keep in mind that the update will bring down the call traffic and reduce the tickets being created significantly. Since we might have to go through existing tickets and varsity to get to know how mandates and schedules work and how to create them, giving us more time to breathe, will make your life easier as well.

Awaiting your reply…

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45

10 December 2021: Circular on mutual funds

15 March 2022: Discontinuation of usage of pool accounts for transactions in the units of Mutual Funds: Clarifications with respect to Circulars dated October 4, 2021

:point_up_2: found some updates on SEBI website

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46

Hi @Bhuvan , Thanks for the time spent on sharing the updates with us. By when will we get some more clarity on the future of Investing & Pledging for Margin via coin?

47

Sorry for delay, I know its last minute. But there have been several complexities and last minute changes as you folks can imagine and hence the delay in updating the thread.

Important: These changes will be live from April 1st 2022, barring any last moment changes or extensions by SEBI.

So broadly, here are the changes, and I’ll post a detailed article by tomorrow:

  • Funds in Zerodha trading account can no longer be used for mutual fund investments
  • For Coin SIPs and AMC SIPs you’ll get a payment link on the SIP date for the payments. For all new SIPs mandates have to compulsorily created.
  • Existing mandates can’t be used for SIPs.
  • For existing Coin and AMC SIPs, a page with all pending orders will be shown and you’ll have to make the payments one by one
  • For lumpsum investments, netbanking, UPI, NEFT and RTGS payments will be available
  • MF pledging will remain unaffected
  • Existing step up SIPs will remain unaffected, but new step up SIPs will be unavailable.
  • Both existing and new conditional orders will be unavailable.
  • Existing Zerodha SIPs can be modified. New SIPs cannot be edited or modified. This is because of the new architecture, :frowning: We’ll try to figure out some solution for this once we make the transition.

We know this is a significant deterioration of the Coin experience but unfortunately, this isn’t in our control. The priority is to make the transition to ensure order placement remains unaffected, and we’ll progressively improve the experience after.

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48

Thanks Bhuvan for clarifiation on pledging

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49

Thanks, from which date will these new processes apply?

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50

New rules come into effect from April 1.

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51

Are Coin SIPs not getting converted to AMC SIPs ?

Will the payment link support UPI & Netbanking ?

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52

Another pain to deal with monthly :frowning:

53

Sorry but this circular was given last year and you are announcing the real implication just 1 day before ?
I understand COIN is free but this is not good to keep us in suspense .

these are severe limitations and it effectively kills COIN. If redemption and purchase amount is routed to bank account all the time , one can just invest via CAMS, KARVY directly.

54

Yes, but the operationzl guidelines were announced by the exchanges on March 24th ::frowning:

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55

Would it be much easier if I just deleted all my existing Coin and AMC SIPs and created new AMC SIPs?
Would I still get a link everytime a SIP needs to be serviced ?

56

i have placed my order today will that be executed

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57

Please let us know what about ELSS orders which are currently being “Processed” at AMC. The funds are already deducted.
Kindly update at the earliest.

58

I already have SIP mandates. Do I need to do anything? I doubt if my SIPs are AMC SIP.

59

Will all redemptions go to zerodha primary bank account that seems to be updated with CDSL or there would be an option to choose additionally added bank accounts in zerodha while submitting a redemption request?

60

The ETFs often times have low liquidity and there can be some deviation in the NAV and price which can make things difficult when buying and selling units.

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Orders till today will be unaffected. Nothing changes, they’ll be processed as usual.

62

Primary bank account only.

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